Many people are trapped in ETH during this market, watching their account losses anxiously, checking trading apps at midnight. To be honest: pretending to be dead and lying still at this position is the most dangerous, but mindlessly cutting losses is even more foolish.
Recognizing reality is more important than dreaming
ETH has been cut in half from last year's peak and then halved again. What we are experiencing now is a slow decline, akin to a dull knife cutting through flesh. Those analysts shouting 'buy the dip opportunity' should be reminded to watch their bullish market videos from last year. On-chain data clearly shows that whale accounts are swapping ETH for stablecoins and BTC, and exchange inventories are continuously rising; this is not a signal of a quick return to a bull market.
Don't let emotions dictate your trades
The dumbest move I've seen is to increase positions to average down when down 10%, then start cursing the market makers when down 30%, and then lying flat after a halving. The market will never rebound just because you've lost a lot; those who shouted 'I won't sell no matter what' at $2700 are now afraid to average down at $2000. This is a typical emotional trading reaction.
Three life-saving strategies
If your position exceeds 50%, you must reduce it. Reduce your position by 10% for every 5% rebound. Don't rush to buy back the USDT you freed up; swapping for BTC is better than holding ETH.
For those with losses under 30%, set a stop-loss at $1900; if it breaks, cut it directly. Don't believe in 'value investing'; ETH is currently facing a double whammy of staking crises and ecological shrinkage.
I really want to hold on to it for the long term and completely forget about the spot by transferring it to a cold wallet. But be prepared for a 3-year wait, during which you might see prices as low as $1500 or even lower.
Survival rules in a bear market
Veterans who have experienced three cycles of bull and bear markets tell you: Never talk about faith during a downtrend. ETH certainly won't go to zero, but it may not lead the next bull market either. The Layer 2 wars are heating up, and the Solana ecosystem is making a comeback, all of which are eroding ETH's fundamentals. What you need to do now is not to fret over current losses but to preserve your strength and wait for a new narrative to emerge.
Remember, being trapped is not scary; what's scary is using the wrong method to get out. The market always has opportunities, but if you lose your principal, it's truly over. At this stage, watching more and acting less is ten times better than making random moves.
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